The Effects of Covid-19 on Sustainable Reporting
Businesses are being scrutinized all around the world, including Malaysia, in the wake of the COVID-19 pandemic. The crisis has brought the importance of transparency and sustainability in business development to the forefront.
There are two main things that people are asking about large organizations: how are they controlling the effect of the pandemic and what should their response be to such a possible crisis in the future?
Sustainability reporting is a report that is published by organizations to give details about the impact a company is having on the environmental, social and economic structure of the society.
Some companies are struggling to come up with modern techniques for efficient sustainability reporting. Here you can discover some of the sustainability reporting trends being observed in Malaysia and other countries.
- The coronavirus pandemic has taken businesses by surprise. No business was ready for this huge crisis in terms of financial or reporting purposes. As a result, many organizations are modifying reports released in December of 2019 and adding some statements about coronavirus. Webpages and other such platforms are also being updated.
- Investors, stakeholders, and experts are keeping a close eye on upcoming sustainability reports. Many financial dealings are highly dependent on these reports because investors are not comfortable in making massive investments in these uncertain times.
- Social impact in sustainability reporting is more important than ever. Constant reporting is done about the treatment of employees by companies. Many investors, employees, and even employers of competitive organizations are gathering information about the handling of the employees in such unprecedented times.
- Financial reporting is a huge part of sustainability reporting, just as in previous years. Accounting and audit firms are helping different companies in Malaysia to release transparent financial records and determine the losses suffered due to the current pandemic. Moreover, data is being collected about possible future trends and strategies are being made on the basis of these projections.
- Due to the severe economic downturn, investors are demanding complete transparency, reliability, and consistency in company records. Managing the impact of COVID-19 on the company remains the top priority of business owners, and the significance of this cannot be underestimated. Investors are expecting companies to do thorough reporting and release records, even if with a little bit of delay.
EU’s Efforts towards the Green Deal
Recently, the European Union has urged countries to go green and implement some drastic changes to protect the environment. A letter sent to environment ministers also urged large corporations to release their sustainability reports. Despite the setback suffered due to the coronavirus pandemic in European countries, they have remained committed to the implementation of the Green Deal.
Some CEOs and executives of leading worldwide corporations have responded positively to such efforts.
Kara Hurst, Head of the Worldwide Sustainability at Amazon says that the world’s number one eCommerce store is working continuously to provide the best service to the customers while being safe for the environment and protecting individuals. Amazon has implemented strict policies to curb the spread of the virus and protect the health of both workers and clients.
Hurst also stated that air pollution is dropping massively due to social distancing guidelines, which gives a small glimpse into the carbon-free future.
In a Nutshell
Even during the coronavirus pandemic, all business owners need to remember that the primary purpose behind sustainability reporting is to ensure to stakeholders that their business is functioning efficiently, legally and sustainably. If there are some issues being faced by companies, they must be reported as well, so that executives can make intelligent decisions based on the transparent and trustable data present in sustainable reports.
In this regard, accounting firms in Malaysia can help you to conduct a thorough analysis of the company and prepare a comprehensive sustainability report. Similarly, accounting firms specialize in the producing and bookkeeping of financial records.
One could argue that sustainability reporting is more critical than ever because every business expert, owner and investor need to fully know the impact of COVID-19 on the sustainability of a company and make strategies to move on from this adverse crisis.
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